Royal Caribbean (RCL) Q3 Earnings Top, Sales Lag Estimates
Royal Caribbean Cruises Ltd. RCL reported mixed results for the third quarter of 2018, wherein earnings surpassed analysts’ expectations while revenues lagged the same.
Adjusted earnings of $3.98 per share surpassed the Zacks Consensus Estimate of $3.96 by 0.5% and increased 13.5% year over year backed by higher revenues. The bottom-line figure was also higher than $3.90-$3.95 anticipated by the company.
Total revenues of $2,796.2 million lagged the consensus mark of $2,822 million but increased 8.8% from the year-ago quarter number. This upside can be attributed to higher passenger ticket as well as onboard and other revenues.
Royal Caribbean Cruises Ltd. Price, Consensus and EPS Surprise
Royal Caribbean Cruises Ltd. Price, Consensus and EPS Surprise | Royal Caribbean Cruises Ltd. Quote
Passenger ticket revenues jumped 7.9% to $2,042.9 million, and onboard and other revenues increased 11.4% to $753.3 million.
On a constant-currency basis, net yields rose 2.6% year over year. This improvement was backed by strong demand for core products and better-than-expected onboard spend.
Net cruise costs (NCC), excluding fuel, was down 0.1% on a constant-currency basis, slightly lower than management’s expectation of 1% increase.
Total cruise operating expenses were $1,411.4 million, up 7.1% on a year-over-year basis. The company witnessed rise in operating expenses at Payroll and related, Onboard and other, Commissions, transportation and other, and other operating segments. Further, fuel and food expenses were up during the quarter under review.
For the fourth quarter of 2018, Royal Caribbean expects adjusted earnings per share of $1.45-$1.50. The Zacks Consensus Estimate for the quarter is currently pegged at $1.58.
Constant-currency net yields are projected to increase by 6.5-7%. NCC, excluding fuel, is likely to be up6-6.5% on a constant-currency basis.
For 2018, Royal Caribbean is anticipating earnings of $8.75-$8.85 per share compared with $8.70-$8.90 mentioned earlier. The Zacks Consensus Estimate for the year stands at $8.91per share. The company expects net yields to lie between 4% and 4.5% on a constant-currency basis.
NCC, excluding fuel, is expected to be up 4.5% on a constant-currency basis.
Zacks Rank & Peer Release
Royal Caribbean currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank(Strong Buy) stocks here.
Carnival Corporation CCL reported better-than-expected results for third-quarter fiscal 2018. Earnings were $2.36 per share, which outpaced the Zacks Consensus Estimate of $2.31 and improved 3.1% year over year.
Two top-ranked stocks from the industry are SeaWorld Entertainment SEAS and Marcus Corporation MCS, each sporting a Zacks Rank #1.
Current-year earnings of SeaWorld and Marcus are expected to grow 128.6% and 18.2%, respectively.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Marcus Corporation (The) (MCS) : Free Stock Analysis Report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
Carnival Corporation (CCL) : Free Stock Analysis Report
SeaWorld Entertainment, Inc. (SEAS) : Free Stock Analysis Report
To read this article on Zacks.com click here.